Utility Tax

Utility Tax Overview & Definitions

Utility taxes are levied on the gross income earned by private utilities from operations within the city of University Place boundaries. Under Ordinance No. 737, Utility taxpayers  in University Place must pay a 6% tax on gross revenue earned in the city. Taxable utilities include electric, water, sewer, natural gas, cable, cellular, telephone, solid waste, and stormwater. The city mandates that Utility taxpayers file and pay their utility taxes via Localgov. 

State law limits the rate of utility tax on cellular, telephone, and natural gas to 6% unless voters approve a higher rate. There are no restrictions on the tax for solid waste. Cable TV must not be taxed at a rate substantially different than other utilities.

The table below indicates the different utility rates assessed in the city of University Place:

Utility Rate
Electric 6.0%
Water 6.0%
Sewer 6.0%
Natural Gas 6.0%
Cable 6.0%
Cellular 6.0%
Telephone 6.0%
Solid Waste 6.0%
Stormwater 6.0%

Tax, Penalty, and Interest Rates

  • Tax Rate: 6% of total gross business derived from the city. For example, if UP Mobile Co. earns $500,000 in a month, it owes $30,000 in utility tax. The company must file and remit this amount to the city regularly.
  • Penalty: The penalties for nonpayment are as follows:
    • 1 to 10 days late – 10% penalty;
    • 11 to 20 days late – 15% penalty
    • 21 to 30 days late – 20% penalty
    • 31 or more days late – 25% penalty
  • Interest: 1% per month that said amounts are past due.

Tax Filing Deadline

Utility taxes are due by the last day of the month after the filing period (monthly, quarterly, or annually) the tax was collected.

Zero Dollar Filing

Every operational business must submit a monthly tax filing through Localgov, even with no revenue to declare.

How to File Your Taxes on Localgov

First, add your business into your Localgov portal:

  1. Sign into your Localgov account: https://tax.localgov.org/
  2. Go to the “My Businesses” page.
  3. Click the button “Add a Business.”
  4. Search for the government name.
  5. Search for your business by address or business name.
  6. Select your business and click the button “Add Business.”
  7. You will be redirected back to the Businesses list page.
  8. To view your business details and required forms, click the magnifying glass icon next to your business name.

 

Next, proceed to submit your tax filing on Localgov:

  1. Sign into your Localgov account: https://tax.localgov.org/
  2. Go to the “Submit Forms” page.
  3. Search for the government name.
  4. Select the tax form you are required to file. If you select the wrong form, you will receive an error message.
  5. Fill out all required fields. The form on Localgov will automatically calculate the tax and fees due.